Some people look forward to retirement because they think they will have all the time at their disposal, and life can be so free and wonderful. Some people are scared of being retired. They are afraid that they don’t know what to do once retired.

No matter what, people will retire sooner or later, voluntarily or non-voluntarily. Therefore, being financially comfortable so that you can explore things and do whatever you wish to do for the rest of your life is a target that everybody should aim for. However, according to survey, 42% of Americans Will Retire Broke. That’s very alarming.

When you retire, you no longer obtain income in return for your work. In the United States at retirement you can receive income from government in the form of social security benefit. The maximum benefit for a worker retiring at full retirement age was $2,788 per month in 2018. In 2019, it increases to $2,861 per month.

Is it enough for someone like me to maintain my lifestyle with that income alone, you may ask? Probably not. That’s why people save up in their IRA, 401(k), etc. to a certain amount which hopefully can last for their lifetime. However, money in IRA or 401(k) can drain out eventually if you continue withdrawing money from it. What if there’s another way of receiving guaranteed income for your lifetime just like social security benefit, would that be nice?

An annuity is a contract between you and an insurance company in which you make a lump sum payment or series of payments and in return obtain regular disbursements beginning either immediately or at some point in the future. The beauty of annuity is that you can be rest assured that the payment check will be delivered to you month by month for as long as you live, and it’s guaranteed. Especially an Index Annuity with lifetime income rider can be a very attractive option.